Tax Policy & Research

31 October 2012

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Pay and File - Update on ROS

In our Pay and File bulletin of 8 October, and TaxFax of 19 October, we highlighted 2 issues members had experienced with ROS, in particular:

1. Difficulties logging in to ROS when using Internet Explorer 9.
2. A possible error in the calculation of relief for PRSA contributions.

We raised these issues with Revenue, who have provided us with the following responses.

Logging into ROS with Internet Explorer

The difficulties arising when logging in to ROS using Internet Explorer 9 were resolved in a ROS release on 21 October.

PRSA Calculation on ROS

We advised members that ROS does not seem to take account of the age-related limits when calculating relief for PRSA contributions made for 2011. We noted to Revenue that in the PRSA Section of the return, when a figure is entered in line (d) “PRSA contributions paid directly by you to a PRSA provider” ROS transfers this figure automatically to line (g) “Total amount of PRSA relief claimed in 2011”, once the “calculate” button on the screen is selected. No adjustment is made for the relevant age/percentage limits that apply in claiming pension relief. This could mean that excess pension relief is claimed.

Revenue has noted this difficulty and will issue an eBrief on the matter shortly. Changes have been made to the calculation for the 2012 return so the issue will not arise next year. In the meantime, they have provided us with the following clarification:

"In the 2011 Form 11 there are three fields within the PRSA section where an individual can claim relief; these are:

PRSA contributions paid directly by you to a PRSA provider

Amount paid between 1/1/2012 and 31/10/2012 for which relief has not already been granted and for which relief is being claimed in 2011

Amount paid in a prior year, for which relief has not been obtained

All the calculate button does is to add these three fields together. The only restriction here is to limit the amount used in the Common Calculation Engine (CCE) to the absolute maximum amount of relief possible (115,000 @ 40%). There is no mini-calculation facility (similar to the one for RACs) which would restrict the relief on the basis of the age of the taxpayer.

The intention always was that for PRSAs (and Qualifying Overseas Pension Plans (QOPPs)) the customer/agent would make this restriction. However both the wording of the above questions (amount paid, as opposed to amount due (or claimed) and the fact that the field where the sum of the above amounts appears is not editable (in both ROS and ITP) does mean that the return and CCE may give excess relief.

Where the restriction applies, the amount of relief due after the restriction should be entered in the appropriate field above (and not the amount paid). A note to this effect can be entered in the return if required".

In today’s bulletin we also bring members attention to two other tips on using ROS, which Revenue has drawn to our attention:

New ROS System Compatibility Check

A new facility for a ROS System Compatibility Check has been introduced for people experiencing difficulty logging in to ROS. The System Compatibility Check allows users to check their system compatibility with ROS and provides trouble-shooting information to help address any issues. To run the check click here.

Downloading the ROS Offline Application

To assist members, we have set out on our website the instructions from Revenue for downloading and using the ROS offline application. Read the note here.